Tesoro Pays Big Fine to EPA

Tuesday, June 4, 2013 @ 05:06 PM gHale

Tesoro Corp. will pay $1.1 million to settle claims it failed to test or monitor the production of gasoline for harmful pollutants.

The U.S. Environmental Protection Agency (EPA) said Tesoro violated requirements of the Clean Air Act at oil refineries in Utah, Alaska, North Dakota and the state of Washington.

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Tesoro said it is resolving the problem and takes its environmental obligations seriously. The EPA requires refineries to ensure gasoline complies with fuel quality and performance standards.

San Antonio, TX-based Tesoro must now submit a plan to ensure it properly tests batches of gasoline at all seven of its western U.S. refineries.

Last August, Tesoro paid $1.2 billion to pick up BP’s California oil refinery and 800 gasoline stations in the Southwest. Tesoro, the largest independent refiner on the U.S. West Coast, also paid about $1.3 billion more for crude and other inventories at the plant, officials said.

With that deal, Tesoro controls 27 percent of California’s refining capacity, according to data from the U.S. Energy Information Administration.

Tesoro understands “the complexities and challenges of operating in California,” said Chief Executive Greg Goff. “We are well positioned to generate significant operational efficiencies, increase our ability to satisfy market demand and reduce stationary source air emissions.”

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